The Chicago Mercantile Exchange is reporting record revenues and earnings for 2005, boosted by surging volumes in electronic trading.
The US futures and options mart reported a 24% increase in net revenues to $233 million and a 34% increase in net income to $76 million for fourth-quarter 2005 compared with fourth-quarter 2004. Net revenues climbed 25% to $921 million for the year, compared with $734 million for 2004. Net income rose 40% to $307 million, versus $220 million a year ago.
The Exchange reported volume growth of more than 20% in every product category and 62% growth in electronic trading
CME chairman Terry Duffy says 70% of the exchange's volume was traded electronically on the Globex platform in 2005, up from 57% in 2004.
Chief executive officer Craig Donohue, comments: "In 2006 we will continue to invest in technology to improve the speed, functionality and reliability of our CME Globex electronic trading platform. We will also continue to focus on growing our foreign exchange markets, increasing electronic trading of our financial options products and expanding our European and Asian client segments."
For 2005, revenue from clearing and transaction fees increased 26%, to $696 million, from $553 million for 2004. Processing services revenue rose 23% to $69 million, from $56 million in 2004, and quotation data fees were up 18% to $72 million, from $61 million in 2004.
Total expenses were $412 million for 2005, 12.6% up on prior year figures driven primarily by technology spending related to additional functionality and capacity.
In 2006, the company expects capital expenditures to grow from $88 million in 2005 to between $90 and $100 million, due to further investment in technology.